Shares of Synaptics Inc. (SYNA) surged more than 18 percent in extended trading on Thursday after the human interface solutions provider reported better-than-expected results for the third quarter and also forecast revenue for the fourth quarter above analysts' estimates.
Rick Bergman, President and CEO of Synaptics said, "We are extremely pleased to report record revenue during the third quarter. The continued adoption of our solutions by a broad base of key customers is a testament to the strength of our technology leadership and has enabled us to diversify our business through increased penetration of the rapidly growing mobile touchscreen market."
Synaptics' revenue from PC products for the quarter declined 10 percent from the year-ago period to $58.6 million, while revenue from mobile products surged 57 percent to $104.7 million. Mobile products revenue includes all touchscreen and video display products.
Revenue mix for the quarter from mobile and PC products was about 64 percent and 36 percent, respectively.
Gross margin was 49.6 percent, an increase of 240 basis points year-over-year.
Santa Clara, California-based Synaptics' third-quarter net income was $36.45 million or $1.07 per share, up from $11.45 million or $0.33 per share in the year-ago period. The latest quarter's results include a benefit of a one-time, non-cash tax item of $15.8 million.
Excluding items, adjusted earnings for the quarter were $27.01 million or $0.79 per share, compared to $17.86 million or $0.51 per share in the prior-year period. On average, analysts polled by Thomson Reuters estimated earnings of $0.57 per share for the quarter. Analysts' estimates typically exclude special items.
Net revenue for the quarter grew 24 percent to $163.32 million from $131.71 million in the year-ago period. Analysts had a consensus revenue estimate of $145.79 million.
Looking ahead to the fourth quarter, Synaptics expects revenues of $190 million to $205 million, while analysts currently estimate revenues of $158.20 million.
SYNA closed Thursday's regular session at $38.54, down $1.02 or 2.58 percent on a volume of 1.16 million shares. However, in after-hours, the stock gained $7.01 or 18.19 percent to $45.55.
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